|
by Mark Halper, ME Editorial Staff Posted on Friday, February 01, 2008 3:41:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | The Sweden-based ERP provider grew revenue and notched its third consecutive year of profitability, but signed fewer customers than in the prior year and saw license revenue slip 26% in North America. |
| Keywords: | IFS financials, IFS revenue |
Revenue at Swedish ERP provider IFS climbed 11% to SKr 682 million for the fourth quarter ended Dec. 31, 2007, on the strength of the EMEA market, although an ongoing dispute with suppliers kept profits virtually flat. And general economic weakening appeared to knock at the door as the company said some customers are delaying payment and undermining cash flow. Fourth-quarter earnings before interest and taxes (EBIT) edged up only 1.6%, to SKr 64 million. The company blamed the sluggish profits on SKr 10 million it set aside pending the outcome of disputes with suppliers that claim IFS owes them money. It declined to name the suppliers. For the year, revenue grew 7% to SKr 2.36 billion, and EBIT jumped nearly 18% to SKr 141 million. Taxes, however, wiped out that earnings gain and more, leaving IFS with a profit of SKr 122 million, down more than 50% from SKr 246 million in 2006. Company CEO Alastair Sorbie gave an upbeat outlook for the upcoming year, despite the world's gloomy economy. "Our pipeline was 24% higher at the end of 2007" than at the close of 2006, he told analysts on a conference call Thursday. Although IFS expects the flagging economy to slow sales of business applications into the consumer market, Sorbie said IFS "is fairly immune" because most of its business is with the defense, contracting and service, infrastructure, and energy industries. [Click to continue] |
|
|
|
|